You may be aware that the IT department has given several deductions from the taxable income under chapter VI A deductions to encourage investments and savings amongst the taxpayers. One of such sections is Section 80CCC. Read below to know the answer to your query on the deduction under section 80CCC is allowed to the extent of what amount.
Section 80CCC of Income Tax ActThe money spent to buy a new policy or to make payments towards the continuation or renewal of an existing policy comes under Section 80CCC’s exemption limit. The main condition to avail this exemption is that the policy for which the money has been spent must be offering a periodical annuity or pension.
This section is read along with Section 80CCD(1) and Section 80C, thereby limiting the total exemption limit to Rs. 1.5 lacs p.a. Now you know about the deduction under 80CCC.
What is 80CCC in Income Tax?
Section 80CCC: Terms and ConditionsAvailable to those who have paid the money to buy or renew a life insurance policy from their taxable income.
The payment of funds from the policy should be made according to the Section 10(23AAB) terms from the accumulated funds.
If any interest is accrued or a bonus is received, it isn’t eligible for deduction under this section.
Any money received from the policy as a monthly pension is liable for taxation as per the prevailing rates.
The amount will be subject to taxation if the policy is surrendered.
Any rebate that was available on investment in annuity plans before 2006 (April) isn’t allowed under Section 88.
Any amount deposited before 2006 (April) isn’t eligible for deduction.
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Read more:
What is Section 80C of Income Tax Act?
How to Save Tax Apart from 80C?
Does HRA come under 80C?
Now you know deduction under section 80CCC is allowed to the extent of what amount.
Deduction under section 80ccc is allowed to the extent of?
Vishal
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2022-06-14T18:45:43+00:00 2022-06-14T19:09:01+00:00Comment
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